Description
Title: Spatial spillovers and Transient and Persistent Efficiency: Evidence from the Portuguese Wine Industry
Abstract: This study examines whether spatial spillovers affect a firm’s productivity (or in)efficiency. In order to achieve this, a spatial stochastic frontier model that takes into account spatial dependence as well as persistent and transient (in)efficiency is specified and estimated. This method is used on a panel dataset of Portuguese wineries from 2014 to 2019. This study is novel in that it includes information on the exact locations of the firms, allowing for the inclusion of neighboring dependence in the analysis of productive efficiency, in addition to the conventional input and output quantities used in the estimation of a production function. Despite the Portuguese wineries’ technological positive dependence on spatial proximity for both inputs and outputs, empirical findings demonstrate that the proximity is not strong enough to result in gains in overall productive efficiency.
Keywords: location; spatial econometric analysis; panel data; wineries; transient and persistent efficiency
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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